Fixed deposits no longer make sense with today’s ultra-low savings rate. High dividend-yielding sectors have emerged as winners for income generation. China large banks’ 5-6% attractive yield looks to persist and S-REITs continue to offer one of the highest dividend yields in the world, at 4-5%.
Generating regular income streams in a low-yielding world is no longer easy. But the hunt for yield continues. China large banks and S-REITs are high dividend-yielding equities in defensive and less volatile sectors, and they play a crucial role in the income end of the Barbell Strategy.
Such income equities will help buffer your portfolio in times of market volatility.
We believe the REIT can continue to deliver income, anchored by a portfolio of largely dominant malls that are well integrated in the established retail eco-system.
Mapletree Commercial (S-REITs)
The REIT invests in income-producing offices, business parks, and retail properties in Singapore. Most of its earnings are derived from VivoCity, one of the largest retail malls in Singapore.
China Construction Bank (China large banks)
CCB is among China’s safest large banks, with high levels of capital allocation and provisioning.
The bank has a strong position in infrastructure loans and will benefit from China’s increased infrastructure spend.
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